Comparative Economic Analysis of Solar PV and Reused EV Batteries in the Residential Sector of Three Emerging Countries—The Philippines, Indonesia, and Vietnam

Abstract

An emerging problem associated with the increased global demand for electric vehicles (EVs) is the post-use of lithium-ion batteries installed in them. Discarded batteries maintain 70–80% of their performance; thus, they are highly valuable recycling resources. Accordingly, technologies that complement the intermittency of renewable energy by integrating discarded EV batteries into battery energy storage systems (BESSs) are receiving attention. Here, the economic feasibility of a residential solar photovoltaic (PV) + reused BESS (RBESS) integrated system in three emerging countries (Philippines, Indonesia, and Vietnam) was analyzed by comparing its performance with that of diesel power generation and central grid-supplied power. The proposed system had a higher economic feasibility than diesel power generation (55.9% lower LCOE) but a lower economic feasibility than the central grid-supplied power (282.7% higher LCOE) in all three countries. Additionally, we conducted a sensitivity analysis by incorporating the investment cost, government subsidy, and social cost of greenhouse gas emissions. In conclusion, the Philippines is the best country for grid parity with the integrated system, following Indonesia and Vietnam. This study examined both the economic and social benefits of the proposed system as a countermeasure to climate change and the virtuous resource cycle.

Keywords

• reused EV batteries
• residential solar PV
• battery energy storage system
• economic feasibility analysis
• HOMER (Hybrid Optimization of Multiple Energy Resources) Pro